What if your money
makes money for you without any risk, and your money will be available with you
100% all the time. Isn't it wonderful? Let me explain how can you earn money
from your money easily?
Why do you consider this?
You don’t not spend
entire monthly salary on regular expenses (time being forget occasional big expenses).
You must (should) be saving some part of salary every month. Most of the people
do not invest this saving for future short or long goals and this money does
not do anything except earning 4% per annum interest for you. I will let you
know how you can earn more interest on your idle money in your saving/salary
account.
As per the RBI’s bank
policy rate hike, all banks are offering good interest (definitely more than standard
4% per annum) on special fixed deposit for any amount for any duration.
What is Special Fixed deposit scheme?
This special fixed
deposit has feature that will allow you to withdraw amount from fixed deposit
amount automatically when you withdraw money from ATM or transfer money for
other purpose. So your money will be available with you 100%. The remaining
amount of the fixed deposit will continue to earn more interest.
Example:
Let’s say you have RS
20,000 saving this month and do not have any expenses planned for 6 months. You
put this amount in special fixed deposit thru your net banking or phone banking
for 6 months with interest rate of 7% P.A. After two months, you need money for
unplanned expenses and you have used that month salary but still need Rs 15,000
then this time Rs 15,000 will be deducted from your fixed deposit automatically
and you earn 2 months interest for Rs 15000
and Rs 5000 will be continue to earn 7% interest till next months.
This can be easily
done with online banking with most of the bank. Your idle money will help you to
earn more interest amount and 100% money
will be available with you all the time.
What are they called in different banks?
This special fixed
deposit schemes have different names in different bank. For example, sweep in
deposit in HDFC bank and Money multiplier in ICICI bank. Please check with respective
banks for more details.
General Note: As per income tax rule, interest earned in
financial year should be added in your year’s income and should be taxed while
filling the return. Even if you pay the tax as per rule then also you will be
in profit for sure.
This approach will
help you increase you saving in long term and most of the case you will not
withdraw amount from fixed deposite and reduce/delay the expense. You should
create fixed deposit in start of the month after putting all planned expenses
aside.
Summary: Even if you save Rs 5000(idle money) per month then you should invest
in these fixed deposit to earn interest.
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